DoD's $12.4M contract for telecom billing app maintenance faces scrutiny over value and competition
Contract Overview
Contract Amount: $12,433,706 ($12.4M)
Contractor: THE Datatech Group Inc
Awarding Agency: Department of Defense
Start Date: 2021-02-28
End Date: 2026-02-27
Contract Duration: 1,825 days
Daily Burn Rate: $6.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: TELECOMMUNICATIONS SERVICES ENTERPRISE ACQUISITION SERVICES (TSEAS) INVENTORY AND BILLING INFORMATION (TIBI) APPLICATION OPERATIONS AND MAINTENANCE. THE PRIMARY OBJECTIVES OF THE APPLICATION ENABLE DISA TO ISSUE MORE ACCURATE/TIMELY BILL STATEMENTS.
Place of Performance
Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $12.4 million to THE DATATECH GROUP INC for work described as: TELECOMMUNICATIONS SERVICES ENTERPRISE ACQUISITION SERVICES (TSEAS) INVENTORY AND BILLING INFORMATION (TIBI) APPLICATION OPERATIONS AND MAINTENANCE. THE PRIMARY OBJECTIVES OF THE APPLICATION ENABLE DISA TO ISSUE MORE ACCURATE/TIMELY BILL STATEMENTS. Key points: 1. The contract aims to improve DISA's billing accuracy for telecommunications services. 2. Competition method is 'Full and Open', but specific pricing details are limited. 3. Potential risks include cost overruns and lack of clear performance metrics. 4. The sector is IT services, specifically custom computer programming.
Value Assessment
Rating: fair
The contract value of $12.4M over five years for application operations and maintenance appears reasonable for enterprise-level IT services. However, without detailed breakdowns of labor categories and hours, a precise benchmark is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific details of the bidding and award, including the number of bidders and the price discovery mechanism, are not provided.
Taxpayer Impact: Taxpayer funds are being used for essential IT infrastructure maintenance. The value for money depends on the effectiveness of the application in improving billing accuracy and efficiency.
Public Impact
Improved accuracy and timeliness of telecommunications billing statements for the Department of Defense. Potential for cost savings through more efficient billing processes. Ensures continued operation of a critical IT system for DISA.
Waste & Efficiency Indicators
Waste Risk Score: 68 / 10
Warning Flags
- Lack of detailed cost breakdown
- Limited information on performance metrics
- Potential for scope creep
Positive Signals
- Clear objective to improve billing accuracy
- Awarded under full and open competition
- Long-term contract provides stability
Sector Analysis
This contract falls within the IT services sector, specifically custom computer programming. Spending benchmarks for similar application operations and maintenance contracts can vary widely based on complexity and service level agreements.
Small Business Impact
The contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
Oversight would typically involve regular performance reviews by DISA to ensure the contractor meets service level agreements and objectives. Accountability for accurate billing rests with both the application and the processes it supports.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Lack of detailed cost breakdown
- Unclear performance metrics
- Limited insight into competition specifics
- No small business participation noted
Tags
custom-computer-programming-services, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.4 million to THE DATATECH GROUP INC. TELECOMMUNICATIONS SERVICES ENTERPRISE ACQUISITION SERVICES (TSEAS) INVENTORY AND BILLING INFORMATION (TIBI) APPLICATION OPERATIONS AND MAINTENANCE. THE PRIMARY OBJECTIVES OF THE APPLICATION ENABLE DISA TO ISSUE MORE ACCURATE/TIMELY BILL STATEMENTS.
Who is the contractor on this award?
The obligated recipient is THE DATATECH GROUP INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $12.4 million.
What is the period of performance?
Start: 2021-02-28. End: 2026-02-27.
What specific performance metrics are in place to measure the success of the TIBI application in improving billing accuracy and timeliness?
The provided data does not specify the performance metrics for the TIBI application. Effective oversight would require clearly defined Service Level Agreements (SLAs) and Key Performance Indicators (KPIs) to objectively measure improvements in billing accuracy and timeliness. Without these, assessing the contract's success is challenging.
How does the 'Full and Open Competition' process ensure the government receives the best value for this $12.4M contract?
Full and open competition theoretically ensures best value by allowing all responsible sources to submit bids, fostering price competition. However, the effectiveness depends on the clarity of the solicitation, the evaluation criteria, and the number and quality of bids received. Without details on the bidding process, it's hard to confirm if optimal value was achieved.
What is the potential taxpayer impact if the TIBI application fails to deliver the promised improvements in billing accuracy?
Failure of the TIBI application to improve billing accuracy could lead to significant taxpayer impact through financial losses due to incorrect billing, increased administrative costs for corrections, and potential penalties or disputes with telecommunications providers. This undermines the contract's objective and represents inefficient use of public funds.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - IT MANAGEMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 5250 W 116TH PL, LEAWOOD, KS, 66211
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $14,141,033
Exercised Options: $12,433,706
Current Obligation: $12,433,706
Actual Outlays: $2,121,272
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 47QTCA20D005Y
IDV Type: FSS
Timeline
Start Date: 2021-02-28
Current End Date: 2026-02-27
Potential End Date: 2026-02-27 00:00:00
Last Modified: 2025-12-31
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